10 Ways the USPS Can Become a True Economic EngineBy Jon Miller | Post Date: January 28, 2009 4:55 PM | Comments: 6
Postmaster General John E. Potter told a U.S. Senate subcommittee he wanted to eliminate the requirement to deliver mail six days a week to every address in America. Potter is quoted as saying that the USPS is "a vital economic engine in our national economy," that it s the second largest employer in the United States, and that the postal service provides not only jobs but an important channel for commerce. I don't know the official definition of an economic engine but any business that turns a $6 billion loss doesn't sound like an engine in good condition. It seems like the USPS needs a new business model. How can the USPS reinvent themselves as a true engine of the United States' economy? The demand their services is declining so the USPS needs to put their assets to some other value added services. In addition to their physical infrastructure and fleet of vehicles, their most important asset is their nationwide organization of people who know and care about their communities. Here are 10 ways the USPS can become a true economic engine by rethinking what it means to serve their communities from their posts.
This is just an initial brainstorm. Should the USPS become the United States People Service then the local communities could decide how best to use the people and resources of their local post office to the benefit of that community. No doubt at least one of these ideas made you laugh "that's stupid" but the alternative is to eliminate jobs and a vital service infrastructure, or lose another $6 billion. There are many potential objections to the ideas above, including retraining, resistance to change and legal liability. Each of these should be studied not as reasons "why not" but obstacles to be removed through why analysis until a positive use can be made of these people's energies. Retraining of the people at the USPS will be needed regardless of whether the USPS keeps the exact same portfolio of services with less staff or whether the services are expended to cover some or all of the above. Some may ask the classic question, "Do we really want our government to be doing..?" This is an unfair as the governments does many things well, many things only a government should do, and as citizens we are ultimately responsible for making sure that our government is serving us effectively. Ours is a government "by the people" and we should not ask if these are things we want "the government" to do but how we want to serve our community. WE are the government. Some of us are simply luckier than others and already work for a government that pays us to serve the people. The USPS can be reinvented as a true economic engine of the United States with a bit of will, courage and creativity and perhaps some more and better ideas than the ones above. Thanks for your comment Austin. I've always been interested in how people think and talk about core competencies. Frankly think most organizations make decisions about what business they want to be in without understanding what core competencies are. There is a classic three-way test that a core competency must pass a in order for it to result in a sustainable competitive advantage. For a set of skills, processes or value creating systems to be a core competency, it must: 1) Grant potential access to wide variety of markets Valuable to the customer, applicably to a wide range or markets and difficult to imitate - it's fairly simple and two-thirds of this is NOT about you, the company but it is about the CUSTOMER. That is really the entire point of this article. It doesn't matter that the USPS delivers the mail. Others can do this and the value to the customer has been steadily eroding with the rise of electronic mail and alternative mailing services. Competencies are learned over time by interacting with customers and refining skills through practice. Arguably, the USPS has a certain knowledge base about their communities and the people in it that is hard to imitate. There is also a certain trust in their brand and their organization that has been built up over the years. We have a relationship with the postal service unlike any other government agency we interact with. A significant retraining effort will be needed for any of the 10 ideas to be feasible, but the USPS does have customer intimacy, wide access to markets and an infrastructure that could only be imitated by the police or similar government organization. Cutting service may be a short-term cost saving but it will only get the USPS in a few years where the automotive companies are today. Through a partnership with the community they could fundamentally rethink their mission of service. Poster: Jon Miller | Post Date: January 29, 2009 3:19 PM I think this is a good idea. This would be the U.S. government performing a service for the people, by the people, exactly what its role is supposed to be. The USPS is the most visible, personal extension of the Federal Government. Poster: Isaac D. Curtis | Post Date: January 30, 2009 9:38 AM First I must ask how much value is there in Saturday delivery? At least fir residential areas??I'm curius. Partnering with local grocery stores to do a Saturday food delivery sevice isn't a bad idea. However I think ups or fedex would be better pick since they have larger vehicles and are more used to carrying bulky packages. Poster: Miket | Post Date: January 31, 2009 1:51 AM Many of the ideas presented don't really leverage the infrastructure of the post office some even require lots of extra equipmeent tools and facilities. The people of the post office could do many of these things better as part time jobs. Maybe there could be a website where interested companies can advertise part time jobs to the post office employees. Poster: Miket | Post Date: January 31, 2009 2:18 AM I think this is a great post because it is so outside the box. I don't necessarily agree with some of the suggestions, but it is a brainstorm activity, not the final solution. BTW - This post and others like it are why I've listed your blog in my "Best of the Lean Blogosphere" at http://www.hertzler.com/blog/dataheads/index.php/2009/02/best-of-the-kaizen-blogosphere/ Poster: Evan Miller | Post Date: February 12, 2009 12:37 PM |




I will admit I find myself instantly confused by this selection of suggestions. While I do not think they are stupid, I do feel that they are outside of USPS’s purported core competency. For a service company that is stumbling in their own core service area to look at branching out seems awkward at best. I do like the idea of self improvement, but I would expect it to improve in areas that do not significantly alter focus away from profit generation.